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[December 23, 2004]

Merger Stirs Comments from the Competition

Earlier today, ServiceWare Technologies, Inc. and Kanisa Inc.
announced a definitive agreement to merge in an effort to become the
leader in Service Resolution (SRM) applications.

According to the
release,
as the demand for Service Resolution Management rises, companies look to
automate customer service, alleviating costs and labor-intensive customer service processes.
The combined company shares 170 joint customers, bringing integrated SRM applications to agents, self-service and peer support to one single platform.

KANA Software,
an SRM solutions provider has stepped up to comment on the merger,
stirring the competition pot. According to H.A. Schade, Director of Products at KANA
Software, "We
see this as recognition and further validation of the application market
that KANA created, namely Service Resolution Managemenet. It's always
flattering when your competition adopts our messaging. Frankly, Kanisa
and ServiceWare were small, struggling companies that each needed to do
something -- or anything -- to try to survive and remain relevant.
Given that their products are almost 100% overlapping with each other,
it will be interesting to see how they play this out. I believe they
have something like five different, incompatible search technologies now
within the combined company. We always welcome worthy competition."

Under
the terms of the agreement, Kent Heyman, CEO of ServiceWare, will become
chairman of the board. Bruce Armstrong, CEO of Kanisa, will become CEO
of the combined company, which will be headquartered in Cupertino,
California. The new name of the combined company has not yet been
determined.